In the tweet, Paul states that:
“Within a year or two, most crypto exchanges will probably only allow withdrawals to “whitelisted addresses”.
And he follows this up by suggesting that the industry will break into two separate components: one for “clean coins” and another for “everything else”.
As cryptocurrency transactions and commerce grow into the mainstream, regulators are looking for more accountability from those who facilitate payments, with crypto exchanges generally the first port of call when it comes to withdrawals into cash.
Changes have been made and crypto exchanges are generally in-line with accepted standards. KYC is universal at the premium exchanges, while account limits are often set and AML procedures seem to be in place.
Paul’s comments suggests this will go even further, with any tarnished cryptocurrency effectively exiled to the greyer side of crypto business.
If this were to go ahead, crypto casinos could be affected. Some have been labelled as money laundering companies, with certain rogue operators not executing the high levels of KYC and AML required of them.
If this were to happen, it would clean up the decentralised casino space, but it could have consequences on coins currently in circulation that may have previously been regarded as suspicious.
At CGN, we only support crypto casinos that operate the due diligence expected of them, and these should be unscathed should Paul’s comments come to fruition. The likes of FortuneJack, CasinoFair and Bitcasino.io all operate within wider industry guidelines and know the source of funds for their transactions.